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Bill would prohibit EBT card usage for strip clubs, psychics and more

The Alabama Capitol in Montgomery is pictured in this Jan. 12, 2010 file photo. A Decatur lawmaker wants legislation to prohibit the use of public benefits to buy booze, cigarettes, casino items, strip club items and tattoos. State Sen. Arthur Orr, R-Decatur, took the first step in filing a bill for the 2013 legislative session, which begins Feb. 5.

The Associated Press

By Dana BeyerleMontgomery Bureau Chief

Published: Tuesday, January 15, 2013 at 4:57 p.m.

Last Modified: Tuesday, January 15, 2013 at 4:57 p.m.

MONTGOMERY | A Decatur lawmaker wants legislation to prohibit the use of public benefits to buy booze, cigarettes, casino items, strip club items and tattoos.

State Sen. Arthur Orr, R-Decatur, took the first step in filing a bill for the 2013 legislative session, which begins Feb. 5.

“Using public benefits for tattoos, liquor and strip clubs is not a benefit for children,” Orr said Tuesday.

The bill also would prohibit businesses from accepting payment through electronic benefit transfer cards for alcoholic beverages, gambling, tattoo parlors, psychic services, and “adult-oriented entertainment in which performers disrobe or perform in an unclothed state.”

Orr said his bill would prohibit the withdrawal of cash on an EBT card from an automated teller machine near or within any business that provides prohibited services or products. He said the ATM locations can be determined from banks and the cards or machines can be programmed to refuse cash withdrawals.

In practice, the prohibition would be almost impossible to enforce since an EBT card holder with a cash benefit would be able to withdraw cash from any other ATM.

Barry Spear, an Alabama Department of Human Resources spokesman, said a recent federal law prohibits the use of EBT benefits for strip clubs, casinos and public and private liquor stores. States were given two years to adjust to the new law.

“Congress decided to do something about it,” he said, after news reports of public assistance recipients using EBT cards in California casinos.

“A person can go to any ATM and retrieve money as cash,” Spear said.

He said public benefit recipients must agree not to use their cash benefits for prohibited items.

“As far as doing anything that makes it physically impossible to make sure they don't, we haven't gotten that far,” Spear said. “It's something the vendor has to do and we have to work with vendors to get that accomplished.”

Spear said the average monthly cash benefit was $79.86 in December. He said 51,288 people got cash benefits in December. Of that number, 37,237 were children.

“The 14,000 are adults getting benefits for children,” he said.

The cash benefit program is small compared with the federal food stamp program, which prohibits purchases of non-food items. Spear said a record 920,764 Alabamians received food stamps in December.

Orr said he considered adding firearms to the prohibited list but decided against it.

“Some dependent mother may feel she needs a firearm for protection,” Orr said.

The bill provides penalties for violations, including the loss of benefits. A first violation would result in the loss of benefits for one month, a second violation for three months and a third violation would permanently disqualify a recipient for benefits.

A business that allows a prohibited purchase would be fined between $100 and $1,000 and could lose its license, depending on the number of violations.

<p>MONTGOMERY | A Decatur lawmaker wants legislation to prohibit the use of public benefits to buy booze, cigarettes, casino items, strip club items and tattoos.</p><p>State Sen. Arthur Orr, R-Decatur, took the first step in filing a bill for the 2013 legislative session, which begins Feb. 5. </p><p>“Using public benefits for tattoos, liquor and strip clubs is not a benefit for children,” Orr said Tuesday.</p><p>The bill also would prohibit businesses from accepting payment through electronic benefit transfer cards for alcoholic beverages, gambling, tattoo parlors, psychic services, and “adult-oriented entertainment in which performers disrobe or perform in an unclothed state.”</p><p>Orr said his bill would prohibit the withdrawal of cash on an EBT card from an automated teller machine near or within any business that provides prohibited services or products. He said the ATM locations can be determined from banks and the cards or machines can be programmed to refuse cash withdrawals.</p><p>In practice, the prohibition would be almost impossible to enforce since an EBT card holder with a cash benefit would be able to withdraw cash from any other ATM.</p><p>Barry Spear, an Alabama Department of Human Resources spokesman, said a recent federal law prohibits the use of EBT benefits for strip clubs, casinos and public and private liquor stores. States were given two years to adjust to the new law.</p><p>“Congress decided to do something about it,” he said, after news reports of public assistance recipients using EBT cards in California casinos.</p><p>“A person can go to any ATM and retrieve money as cash,” Spear said.</p><p>He said public benefit recipients must agree not to use their cash benefits for prohibited items.</p><p>“As far as doing anything that makes it physically impossible to make sure they don't, we haven't gotten that far,” Spear said. “It's something the vendor has to do and we have to work with vendors to get that accomplished.”</p><p>Spear said the average monthly cash benefit was $79.86 in December. He said 51,288 people got cash benefits in December. Of that number, 37,237 were children. </p><p>“The 14,000 are adults getting benefits for children,” he said.</p><p>The cash benefit program is small compared with the federal food stamp program, which prohibits purchases of non-food items. Spear said a record 920,764 Alabamians received food stamps in December.</p><p>Orr said he considered adding firearms to the prohibited list but decided against it.</p><p>“Some dependent mother may feel she needs a firearm for protection,” Orr said.</p><p>The bill provides penalties for violations, including the loss of benefits. A first violation would result in the loss of benefits for one month, a second violation for three months and a third violation would permanently disqualify a recipient for benefits.</p><p>A business that allows a prohibited purchase would be fined between $100 and $1,000 and could lose its license, depending on the number of violations.</p>